carrotcryptonews

  Biswap   lets users earn trading fees and farming rewards by supplying tokens to pools, but those nominal returns must be weighed against   impermanent loss   and token volatility. Adding Liquidity on Biswap: Real Returns vs Impermanent Loss comes down to three numbers you can estimate up front: expected fee/reward yield, likely price movement (which causes impermanent loss), and time horizon. Below is a practical guide with examples, calculations, and action steps to evaluate whether providing liquidity on Biswap makes sense for you. How liquidity provision works on Biswap (quick mechanics) When you add a token pair to a pool you deposit both tokens in proportion to the pool’s ratio and receive an LP token representing your share. Those LP tokens accrue a portion of swap fees and may be eligible for additional farming incentives. Biswap, as a decentralized exchange, uses an  AMM  model where prices adjust automatically based on relative token balances. K...

  SpookySwap   fees are broadly simple on paper but can hide real costs when you trade or provide liquidity: swaps incur a percentage fee, LPs earn most of that fee but face   impermanent loss , and traders encounter slippage, gas, and routing inefficiencies. This article — SpookySwap Fees Breakdown: Trading Costs, LP Fees, and Hidden Expenses — gives clear numbers, worked examples, and practical steps to reduce what you pay. Key Takeaways Swap fee  is the primary visible cost — typically a small percentage (e.g., ~0.30%) taken per trade and distributed to LPs and protocol treasury. LP fees  are earned proportionally to your share of a pool, but earnings must be weighed against  impermanent loss . Hidden expenses  include slippage, gas/approval costs, routing price impact, MEV/front-running risk, and bridging fees when moving assets across chains. Use deeper pools, set slippage tolerances carefully, and check routing paths to minimize total cost. For l...